Sydney-based Solomon, backed by a syndicate of Chinese investors, is helping a developer turn an entire newly-built block of units in Strathfield South into hotel rooms mainly targeting Chinese and Asian tourists on guided tours on the Approved Destination Status (ADS) scheme.

The ADS scheme is worth big money. Visas are issued only to people travelling on structured tours organised by outbound tour operators approved by both Australian and foreign governments.

The drawcard in targeting tour operators is the high volume of customers they bring.

As the single owner of the registered strata units, the South Strathfield developer is able to lease the apartments unobstructed, while retaining its option to sell the units when the market picks up. The property will be completed and furnished for lease early next year.

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"Previously there weren't many developers considering this option because business was good but now it is rising in popularity," Solomon Hotels director Shawn Shi said.

"But the difficulty is many developers are put off by onerous long-term hotel operation contracts."

"Our hotel management contract is completely flexible allowing developers to opt out and return to a sale strategy quickly. It's a game changer."

As the property is about 12 kilometres south-west of the Sydney CBD, rates are also more affordable compared to the CBD at up to $150 a night for a one-bedroom unit and up to $250 a night for a two-bedroom.

The cheaper price appeals to ADS tourists who follow a strict transport-catered program and are agnostic to hotel locations.